This is an appropriate time to retell something that happened a few weeks ago. I met with a financial adviser to go over my affairs to align them with Australia and US law.
As is probably no surprise, I currently hold no stocks whatsoever. I am heavy cash, property, etc. Not that I am happy with those assets either, but in the end 100 acres of land does not suddenly become 50 acres of land. And $100 in cash tends to become $50 in cash over a medium time frame (barring bank collapse).
The conversation included these snippets:
Adviser: “You really need to diversify more. Stocks are the best long-term investment. Here, have a look at these charts showing long-term growth”.
Me: “Fuck that. Stocks are fucked and are gonna collapse.”
Adviser: “No they are not. The world-economy is strong. The US is growing and their unemployment is down, and their economy is booming!”
Me: “Fuck that. You have no idea. If the US economy is so strong, why are real wages down, why is the participation rate down, and why are the numbers of people on welfare benefits booming?”
Adviser: “Ummm, what is participation rate?”
Me: “You are joking, right? You need to educate yourself about what is happening in the world. Plus, you need to understand that Europe and China are hanging by threads, as is the US. What do you think will happen to US/Australian stocks if Italy, Spain, or France goes the way of Greece?”
Adviser: “But Spain is booming again! They have really rebounded! Plus, Australia and US stocks are not tied to Europe, and any fall in Europe will not affect the US or Australia!”
Me: “Where do I start? First, you know Spain’s unemployment rate is around 25%. Does that sound like it is booming? Does an unemployment rate of almost 50% for young people sound like it is booming?”
Adviser: “That is not right. That cannot be right. Can it?”
Me: “Again, you really need to find out what is going on in the world. If you think that a huge collapse in Europe will not flow through to the US and Australia, you have no idea about the interconnected global economy. And we have not even discussed the debacle that is China. China is a basket case and its stock market is hanging by a thread. That will have a huge impact on the US and Australian stock market.”
Adviser: “Umm, I do not think it will.”
Seriously, you cannot make this shit up. This guy is a senior partner in a very large accounting/financial advice firm. He charges hundreds of dollars an hour for his “advice”. He has decades of experience. And he is totally clueless. If I had followed his advice those few weeks ago, I would be down seven figures today, and he would have collected his fees no matter what. That these folks can go about selling “advice” should be a crime.
You can imagine how I left it with him – don’t call me, I will call you. Hope he is holding his breath. But I am intending to email him and tell him “I told you so.”
Buyer beware as always prevails. I have since sought advice from someone who is not aligned with selling anything and who does not receive commissions. I need structure/tax advice, and knowledge of any low-risk, capital preserving investments that pop up, but anyone advocating I buy stocks gets shown the door.
What I do not need is someone telling me the sun is shining when I know it is in fact night time.
llpoh–I can’t pull the wool over your eyes. I guess in some places water will be more valuable than gold.
It’s better to have too much than not enough. You better get hoppin’, things don’t look to stable here.
Maybe they won’t let you out without paying an exorbitant exit tax.
Homer – There is an exit tax, but it applies to capital gains – you have to crystallize capital gains. That has been addressed over the years. They will need to find a different milch cow than this furry bunny.
Administrator says:
Gains and losses within a Roth IRA have no tax implications. You aren’t taxed on gains and can’t deduct losses.
__________________________
Something AWD would agree with me on. Child support payments should be tax deductible. Most of the fucking bitches (unless you are just a loser), just use it as alimony anyway. My ex does, the DA doesn’t give a shit. It has been comical when I had to appear in court for back child support, when unemployed; sit and listen to all these meth addicted losers who can’t make a $50 a month support order, while mine is about $1,400 a month, my kids are over 18 and she has remarried to a physician. I have been ordered to pay until my kids are out of college.
Pirate Jo is right. Don’t have kids.
After the Ass-Clown Gambit Reversal, are Bullard, Fischer Up Next?
http://winteractionables.com/?p=24380
“Gains and losses within a Roth IRA have no tax implications. You aren’t taxed on gains and can’t deduct losses.”
—-Admin @ SSS
I think you are correct, but it’s not an answer I wanted to hear. Please come up with a different spin so I can try to take the losses. If the IRS challenges me on the deduction, I can blame it on YOU. And I’ll throw you under the bus and give them your name and address. It will be my finest moment on “irritating Admin.” Heh.
SSS
You need to hire this guy for tax advice.
“Pirate Jo is right. Don’t have kids.”
No, just be damn careful who you marry (and with whom you have kids.)
Needle in haystack time. Or in a more common vernacular: “Don’t let the little head dictate policy.”
“Be damn careful who you marry (and with whom you have kids.)”
The best way is to not get married or have kids at all. The risks are just too high. Nobody thinks they are marrying the wrong person, but an awful lot of them do, and people can change over time. I’ve seen people get married and have kids and it drives them to utter bankruptcy – literally.
True story: I used to work with this gal who was married and had two kids, with a third on the way. I’d been with my boyfriend for several years and she had this idea he was stringing me along or something. Like I wanted to get married and he just didn’t love me enough or for whatever reason wasn’t going along with it. I know, right? People think if you’re a woman you want to get married. But whatever.
I explained to her that I didn’t want to have kids and really didn’t have any interest in getting married, either. The way I had to explain it to her so that she would understand, was, I don’t NEED a reason to NOT do something. I need a reason to change a situation I am already happy with. In other words, what is a good reason to get married? Her response was that if you are married, the guy can’t just leave you any time he wants. My response was, “What if *I* am the one who wants to leave?” Then I got *blink* *blink* in response.
Fast forward ten years, her husband cheated on her, they got divorced, and since she was senior vice president by then, SHE had to pay HIM money because she made more.
My boyfriend and I have been together for more than eight years now, we’re happy, and we still live in separate residences – we don’t even “shack up.” That’s what happens when you put a couple of introverts together, I guess. Don’t fix what isn’t broke.
Pirate Jo,
OK, I understand your POV. Speaking for myself, I could live pretty decently on my income without a wife and kids to support. However, I adore my kids, wouldn’t give up the life I have for all of llpoh’s money. Some things just aren’t worth trading for European vacations and cool gadgets.
@PJ – YMMV
Without my wife I’d have zero degrees, probably no money, and would probably be a jarhead squandering my cash on booze.
Or working for the railroad squandering my cash on booze.
Or working as a farmhand squandering my cash on booze.
Anyway you slice it, my star was not rising. I got lucky.
Very lucky.
TPC – yes, you did. Do not screw it up.
If I went to the Rumble in the City, I would sit with PJ and her Bae. That way I could sit and watch everything and not worry about having to make small talk. Most folks have to carry a cell phone, I prefer to be aware of my surroundings and not have to zone out into the ether via a cell contraption.